Bitcoin (BTC) slipped below the $28,000 level on Tuesday, trading just over $27,600 in Asian afternoon hours. This drop came shortly after the cryptocurrency crossed the $28,000 mark at the start of the week. Concurrently, Ether (ETH) fell 3.5% during a lackluster first day of ETH futures ETF trading in the U.S.
The debut of the VanEck Ethereum Strategy ETF ($EFUT) was a significant event anticipated by many in the crypto market. However, following its launch, sell volume increased, potentially due to traders engaging in profit-taking to recover some losses encountered during this bear market.
Despite these movements, some market insiders maintain an optimistic outlook for October, often referred to as "uptober" within the industry. The overall cryptocurrency market saw its valuation drop 1.62% over the past 24 hours according to CoinMarketCap data. The CoinDesk Market Index (CMI), a broad-based weighted index of hundreds of tokens, also fell 3%, indicating profit-taking across the board.
Other cryptocurrencies such as XRP and BNB Chain's BNB slumped 2.7%, while dogecoin (DOGE) and Tron network's TRX fell as much as 4%. However, Rollbit's RLB tokens rose by 8%, continuing a multi-day run amid increased token demand and platform revenues.
Bitfinex markets analysts noted in a weekly report that long-term investors were continuing to add to their holdings, boosting demand. They pointed out that Bitcoin's on-chain activity had hit record highs in terms of new addresses, with this activity predominantly involving short-term holder supply. "This allows the supply held by long-term holders to continue reaching new peaks as short-term holders sell," they stated.
The analysts also suggested that volatility might soon make a comeback in crypto, potentially towards the upside. However, they also acknowledged the ongoing Sam Bankman-Fried trial could influence market trends based on any new information about crypto markets that may emerge.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.